**Direct Labor Efficiency Variance Calculation Example**Assembly line workers at Wildhorse Manufacturing worked a total of 10,400 direct labor hours to produce 40,400 units. The standard for producing one unit is 15 minutes at a wage rate of $11.60. If the actual wage rate was $11.10 per direct labor hour, Wildhorse’s direct labor efficiency variance is:- ○ $2000 favorable.- ○ $3480 unfavorable.- ○ $5050 unfavorable.- ○ $3330 favorable.To calculate the direct labor efficiency variance, first determine the standard labor hours allowed for the actual production:1. Standard hours per unit: 15 minutes = 0.25 hours2. Total standard hours for 40,400 units = 40,400 units × 0.25 hours/unit = 10,100 hoursThe variance is calculated using the formula:\[\text{Efficiency Variance} = (\text{Standard Hours} - \text{Actual Hours}) \times \text{Standard Rate}\]Use these numbers in the formula:\[(10,100 \, \text{hours} - 10,400 \, \text{hours}) \times \$11.60 = -300 \, \text{hours} \times \$11.60 = -\$3,480\]Therefore, the direct labor efficiency variance is $3,480 unfavorable. **Labor Rate Variance Problem**Assembly line workers at Crane Manufacturing worked a total of 14,400 direct labor hours to produce 38,400 units. The standard for producing one unit is 15 minutes at a wage rate of $12.40. If the actual wage rate was $12.90 per direct labor hour, Crane’s direct labor rate variance is:- ○ $4,800 unfavorable.- ○ $4,800 favorable.- ○ $7,200 favorable.- ○ $7,200 unfavorable.

Name: **Direct Labor Efficiency Variance Calculation Example**Assembly line
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: **Direct Labor Efficiency Variance Calculation Example**Assembly line workers at Wildhorse Manufacturing worked a total of 10,400 direct labor hours to produce 40,400 units. The standard for producing one unit is 15 minutes at a wage rate of $11.60.

The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

Business

Accounting

Assembly line workers at Wildhorse Manufacturing worked a total of 10400 direct labor hours to produce 40400 units. The standard for producing one unit is 15 minutes at a wage rate of $11.60. If the actual wage rate was $11.1 per direct labor hour, Wildhorse's direct labor efficiency variance is O $2000 favorable. O $3480 unfavorable. O $5050 unfavorable.

Assembly line workers at Wildhorse Manufacturing worked a total of 10400 direct labor hours to produce 40400 units. The standard for producing one unit is 15 minutes at a wage rate of $11.60. If the actual wage rate was $11.1 per direct labor hour, Wildhorse's direct labor efficiency variance is O $2000 favorable. O $3480 unfavorable. O $5050 unfavorable.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 2 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 12,000 units. The standard cost for labor allowed for the output was $90,000, and there was an unfavorable direct labor time variance of $5,520. NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. What was the standard rate per hour? standard rate per hour. (with "$" round answer to two decimal places with commas as needed) How many actual hours were worked? actual hours. (round answer to whole number with commas as needed) Complete the following table of variances and their conditions: Variance Variance Amount Favorable (F) or Unfavorable (U) Labor Rate Labor Time Total DL Cost…
Javon Company set standards of 3 hours of direct labor per unit at a rate of $16.40 per hour. During October, the company actually uses 20,500 hours of direct labor at a $340,300 total cost to produce 7,000 units. In November, the company uses 24,500 hours of direct labor at a $407,925 total cost to produce 7,400 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months. (2) Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?
Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 3 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 10,000 units. The standard cost for labor allowed for the output was $120,000, and there was an unfavorable direct labor time variance of $5,872. A. What was the standard cost per hour? Round your answer to two decimal places. Standard cost $fill in the blank 1 per hour B. How many actual hours were worked? Actual hours fill in the blank 2 C. If the workers were paid $4.15 per hour, what was the direct labor rate variance? Round your answer to two decimal places. Enter the amount as positive number. Direct labor rate variance $fill in the blank 3 Unfavorable
I don't have option. can you give me the solution of this problem.
A company operates a process costing system. The process is expected to lose 10% of input and this can be sold for $0.45 per kg. Inputs for the month were: 2,500 kg at a total cost of $4,425 Direct Material Direct Labour 5,250 for the period there is no opening or closing work-in-progress in the period. Actual output was 2,150 kg. What is the valuation of the output? O a. $9,675.00 O b. $9,137.50 O c. $9,055.50 O d. $9,245.00
Company-A makes a hand soap called Simply Clean. Each bottle has a standard labor cost of 1.25 hours at $30.00 per hour. During June, Company-A manufactured 12,000 bottles. They used 17,000 hours at a cost of $510,000. Calculate the labor time variance, labor rate variance, and total labor variance.
The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows: Line Item DescriptionValueFixed overhead (based on 10,000 hours)3 hours per unit at $0.71 per hourVariable overhead3 hours per unit at $1.98 per hour Actual Costs Total variable cost, $18,200 Total fixed cost, $8,200 The fixed factory overhead volume variance is Group of answer choices $1,136 unfavorable $909 unfavorable $909 favorable $0
The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs 3 hours per unit at $0.71 per hour 3 hours per unit at $1.92 per hour Fixed overhead (based on 10,000 hours) Variable overhead Actual Costs Total variable cost, $18,200 Total fixed cost, $8,100 The variable factory overhead controllable variance is Oa. $3,800 unfavorable Ob. $3,800 favorable Oc. $3,040 favorable Od. So
PRESENT YOUR ANSWER AS: (10) IF FAVORABLE OR 10 IFUNFAVORABLE. The Standard manufacturing corporation uses a standardcost system in accounting for the cost of its only product.The standard cost per unit (based on 10,000 unitsproduction) was set up as follows: Direct materials, 10 kgs@P11/kg.; Direct labor, 8 hours @ p50 per hour; Factoryoverhead, 8 hours @ P15 per hour. The following data onthe operations appear in the company's record for themonth of July: Units completed during the month, 8,000units; units in process at the end of the month, with 100%materials but half completed, 1,000 units; Direct materialsused, 95,000 kgs @ P10 per kg; Direct labor, P3,510,000 ata rate of P54; Actual overhead for the month P985,000.Compute for the Variable efficiency variance. Indicate whether favorable or unfavorable.
Subject:- Account Jupiter Co. applies overhead based on direct labor hours. The variable overhead standard is 5 hours at $13 per hour. During February, Jupiter Co. spent $128,400 for variable overhead. 9,200 labor hours were used to produce 2,300 units. What is the variable overhead rate variance? 4
Vaughn Paints manufactures artist's oil paints. Each 40 ml tube of paint requires 5 minutes of direct labor, and the standard labor rate is $8.50 per direct labor hour. In September, Vaughn incurred 11,710 direct labor hours at a cost of $100,070 to produce 140,700 tubes of paint. Calculate Vaughn's direct labor rate variance for September. (Round intermediate calculations to 5 decimal places, e.g. 1.24638 and final answer to O decimal places, e.g. 5,275.) Direct labor rate variance $ Unfavorable
A manufacturer reports the following costs to produce 12,000 units in its first year of operations: direct materials, $12 per unit, direct labor, $8 per unit, variable overhead, $84,000, and fixed overhead, $120,000. The total product cost per unit under absorption costing is: Multiple Choice $27 per unit. $30 per unit. $37 per unit. $19 per unit. $20 per unit.